What caused PHX's earnings to drop in Q3 2023?

PHX Minerals Inc. experienced a drop in earnings in Q3 2023 due to several factors:

1. **Low Natural Gas Prices**: The company's revenues are partly tied to natural gas prices. In Q3, historical low natural gas prices negatively impacted PHX's earnings. Despite this, the company continued to generate cash flow, fund acquisitions, and maintain ample liquidity, demonstrating the advantage of its mineral business model.
2. **Strategic Dividend Payments**: PHX Minerals pays out a significant portion of its earnings as dividends. This dividend-heavy payout policy might be contributing to lower growth in earnings. The company's recent dividend announcement indicates a yield of 2.73%, with an annualized dividend of $0.09 per share. While this might appeal to income-focused investors, it could also imply that the company is not retaining sufficient earnings to reinvest in growth opportunities.

In summary, PHX's earnings drop in Q3 2023 was likely a result of a combination of low natural gas prices and strategic dividend payments.